Question 1

The Du Pont model measures ROI as it is affected by

Accepted Answer

A) contribution margin and asset turnover. 
B) profit margin and asset turnover. 
C) asset turnover. 
D) profit margin. 
A) contribution margin and asset turnover. 
B) profit margin and asset turnover. 
C) asset turnover. 
D) profit margin.

Question 2

If a new project generates a positive residual income,the

Accepted Answer

A) project's return on investment is less than the target rate. 
B) project's return on investment is greater than the target rate. 
C) project's return on investment is equal to the target rate. 
D) relationship between the project's return on investment and the target rate cannot necessarily be determined. 
A) project's return on investment is less than the target rate. 
B) project's return on investment is greater than the target rate. 
C) project's return on investment is equal to the target rate. 
D) relationship between the project's return on investment and the target rate cannot necessarily be determined.

Question 3

The Grocery Division The Grocery Division of Crest Company reported the following results for a recent year
  Refer to the Grocery Division
What was the profit margin for the Grocery Division?

Accepted Answer

A) 68% 
B) 35% 
C) 32% 
D) 22% 
A) 68% 
B) 35% 
C) 32% 
D) 22%

Question 4

The Clothing Division The Clothing Division of Sakowitz Company reported the following results for a recent year
  Refer to the Clothing Division
What was the asset turnover ratio of the Clothing Division?

Accepted Answer

A) 1.475 
B) 3.48 
C) 0.680 
D) 1.23 
A) 1.475 
B) 3.48 
C) 0.680 
D) 1.23

Question 5

Which type of financial measure better predicts the direction of future cash flows?

Accepted Answer

A) yes yes 
B) yes no 
C) no no 
D) no yes 
A) yes yes 
B) yes no 
C) no no 
D) no yes

Question 6

A primary characteristic of a performance management system is

Accepted Answer

A) consistency at all levels in the organization. 
B) adaptability to differing situations in the organization. 
C) efficiency of application to all individuals in the organization. 
D) flexibility to delay rewards although performance objectives have been met. 
A) consistency at all levels in the organization. 
B) adaptability to differing situations in the organization. 
C) efficiency of application to all individuals in the organization. 
D) flexibility to delay rewards although performance objectives have been met.

Question 7

Arkansas Company Arkansas Co.has established a target rate of return of 16% for all divisions.For the most recent year,Little Rock Division generated sales of $10,000,000 and expenses of $7,500,000.Total assets at the beginning of the year were $5,000,000 and total assets at the end of the year were $7,000,000.
Refer to Arkansas Company.For the most recent year,what was Little Rock Division's return on investment?

Accepted Answer

A) 20.83% 
B) 35.71% 
C) 41.67% 
D) 50.00% 
A) 20.83% 
B) 35.71% 
C) 41.67% 
D) 50.00%

Question 8

List the five general criteria that should be considered when designing a performance measurement system.

Accepted Answer

The answer of List the five general criteria that should...

Question 9

Contingent pay

Accepted Answer

A) is always paid in stock options. 
B) is the sole source of pay an employee receives from his/her employer. 
C) is received in addition to the basic wage and is dependent upon performance exceeding some performance objective. 
D) can only apply to individual performance. 
A) is always paid in stock options. 
B) is the sole source of pay an employee receives from his/her employer. 
C) is received in addition to the basic wage and is dependent upon performance exceeding some performance objective. 
D) can only apply to individual performance.

Question 10

The information below relates to costs,revenues,and assets anticipated in the Shoe Division of BVD Footwear Corporation:   How would each of the following measures be affected if sales rise by $5,000 in the Shoe Division?

Accepted Answer

A) increase increase increase 
B) increase no change increase 
C) increase increase no change 
D) no change no change increase 
A) increase increase increase 
B) increase no change increase 
C) increase increase no change 
D) no change no change increase

Question 11

Net cash flow could be used to measure performance in

Accepted Answer

A) cost centers and investment centers. 
B) revenue centers and profit centers. 
C) revenue centers and investment centers. 
D) profit and investment centers. 
A) cost centers and investment centers. 
B) revenue centers and profit centers. 
C) revenue centers and investment centers. 
D) profit and investment centers.

Question 12

Economic value added (EVA)applies the target rate of return to the market value of the capital invested in a division.

Accepted Answer

A) True 
 B)False

Question 13

Manipulation of segment expenses may result in the segment margin not being an accurate performance measure.

Accepted Answer

A) True 
 B)False

Question 14

On a balanced scorecard,which of the following would be most appropriate to measure financial performance?

Accepted Answer

A) Market share 
B) Customer retention 
C) Percentage of sales from new products 
D) Investment in intellectual capital 
A) Market share 
B) Customer retention 
C) Percentage of sales from new products 
D) Investment in intellectual capital

Question 15

All other things being equal,an increase in sales price would increase

Accepted Answer

A) asset turnover. 
B) profit margin. 
C) residual income. 
D) all of the above. 
A) asset turnover. 
B) profit margin. 
C) residual income. 
D) all of the above.

Question 16

The segment margin of a profit or investment center does not include allocated common costs.

Accepted Answer

A) True 
 B)False

Question 17

An organization's values statement identifies fundamental beliefs about what is important to the organization.

Accepted Answer

A) True 
 B)False

Question 18

An increase in a corporation's target rate would result in a(n)

Accepted Answer

A) increase in residual income. 
B) decrease in return on investment. 
C) decrease in residual income. 
D) decrease in both residual income and return on investment. 
A) increase in residual income. 
B) decrease in return on investment. 
C) decrease in residual income. 
D) decrease in both residual income and return on investment.

Question 19

Speed of delivery is an example of a leading indicator.

Accepted Answer

A) True 
 B)False

Question 20

Moore Company One of the products manufactured by Moore Company is a plastic tray.The information below relates to the Tray Production Department:
  Refer to Moore Company.What is the process productivity in the Tray Production Department?

Accepted Answer

A) 588 
B) 625 
C) 667 
D) 833 
A) 588 
B) 625 
C) 667 
D) 833

The Du Pont model measures ROI as it is affected by

If a new project generates a positive residual income,the

The Grocery Division The Grocery Division of Crest Company reported the following results for a recent year Refer to the Grocery Division What was the profit margin for the Grocery Division?

The Clothing Division The Clothing Division of Sakowitz Company reported the following results for a recent year Refer to the Clothing Division What was the asset turnover ratio of the Clothing Division?

Which type of financial measure better predicts the direction of future cash flows?

A primary characteristic of a performance management system is

List the five general criteria that should be considered when designing a performance measurement system.

Contingent pay

The information below relates to costs,revenues,and assets anticipated in the Shoe Division of BVD Footwear Corporation: How would each of the following measures be affected if sales rise by $5,000 in the Shoe Division?

Net cash flow could be used to measure performance in

Economic value added (EVA)applies the target rate of return to the market value of the capital invested in a division.

Manipulation of segment expenses may result in the segment margin not being an accurate performance measure.

On a balanced scorecard,which of the following would be most appropriate to measure financial performance?

All other things being equal,an increase in sales price would increase

The segment margin of a profit or investment center does not include allocated common costs.

An organization's values statement identifies fundamental beliefs about what is important to the organization.

An increase in a corporation's target rate would result in a(n)

Speed of delivery is an example of a leading indicator.

Moore Company One of the products manufactured by Moore Company is a plastic tray.The information below relates to the Tray Production Department: Refer to Moore Company.What is the process productivity in the Tray Production Department?

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Exam 14: Performance Measurement, balanced Scorecards, and Performance Rewards

The Du Pont model measures ROI as it is affected by

If a new project generates a positive residual income,the

The Grocery Division The Grocery Division of Crest Company reported the following results for a recent year Refer to the Grocery Division What was the profit margin for the Grocery Division?

The Clothing Division The Clothing Division of Sakowitz Company reported the following results for a recent year Refer to the Clothing Division What was the asset turnover ratio of the Clothing Division?

Which type of financial measure better predicts the direction of future cash flows?

A primary characteristic of a performance management system is

List the five general criteria that should be considered when designing a performance measurement system.

Contingent pay

The information below relates to costs,revenues,and assets anticipated in the Shoe Division of BVD Footwear Corporation: How would each of the following measures be affected if sales rise by $5,000 in the Shoe Division?

Net cash flow could be used to measure performance in

Economic value added (EVA)applies the target rate of return to the market value of the capital invested in a division.

Manipulation of segment expenses may result in the segment margin not being an accurate performance measure.

On a balanced scorecard,which of the following would be most appropriate to measure financial performance?

All other things being equal,an increase in sales price would increase

The segment margin of a profit or investment center does not include allocated common costs.

An organization's values statement identifies fundamental beliefs about what is important to the organization.

An increase in a corporation's target rate would result in a(n)

Speed of delivery is an example of a leading indicator.

Moore Company One of the products manufactured by Moore Company is a plastic tray.The information below relates to the Tray Production Department: Refer to Moore Company.What is the process productivity in the Tray Production Department?

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters